Market Making & Clearing Support Services

IBS Forex provides 24 hour trading coverage of all major and most minor currencies and makes markets in Spot, Forwards, and EFPs (exchange-for-physicals) transactions.

IBS Forex acts as a Principal Market Maker in these transactions. A principal market maker assumes market risk to provide its clients with market liquidity by acting as the counterparty for its clients trades. IBS Forex may have offset its risk involved in these transactions directly or may have assumed the market risk of these transactions without taking any steps to hedge or reduce its market exposure. IBS Forex may have Marked-Up or Down the price(s) of these transactions. The amount of any such Mark-Up/Down will vary depending on the transaction’s size, amount of time to maturity and prevailing market conditions.

In addition to its Market Making function, IBS Forex provides Specialized Clearing and Support Services for a variety of traders including Self-Directed, Broker-Assisted, Fully-Managed, as well as Trading System Execution Services. We support two distinct transaction types for three different types of traders.

Transaction Types

"Spot" Foreign Exchange Transactions

This is the most common type of Interbank Foreign Exchange transaction.   In a "Spot" Trade, you buy or sell one currency in exchange for another for "prompt settlement".

"Prompt Settlement" means the exchange of one currency for another in full satisfaction of the terms and conditions of an Interbank Foreign Currency trade within two business days.

For example, The USD/JPY rate is quoted at 111.95 / 98. This quote represents the bid/offer spread for USD vs. Japanese Yen. If you were to buy U.S. Dollars and sell Japanese Yen at an exchange rate of 111.98, Yen-to-the-Dollar, in a Spot Trade you would receive $100,000 USD and be required to deliver 11,198,000 JPY in two business days. Spot transactions require payment in full on settlement day.

Margined Foreign Exchange Transactions

A Margined Forward transaction is identical to a "spot" transaction except that the Delivery Date is extended into the future by mutual agreement. A small good faith deposit controls the entire face value of the contract creating leverage or gearing of the transaction. This gearing increases the potential for profit as well as loss. Margined Forward transactions either require payment in full on settlement or the position must be liquidated. IBS Forex requires a good faith deposit to secure performance on all margined forward transactions.

Trader Types

Self-Directed

Qualified investors who wish to make their own trading decisions gain unprecendented access to the foreign exchange market. Services include:

  • Direct access to live tradable foreign exchange quotes with The Forex Desk
  • Real-Time Positon, P&L and Margin Reports

Broker-Assisted

Developed for individual investors who generally make their own trading decisions but may occasionally need or require the services of a experienced broker. Services can include assistance with order placement; aid in the development/execution of a trading plan; trading recommendations and executions. Fees vary based on levels of service provided.

Managed Forex

Developed for the individual trader who does not have the time or experience to make his or her own Forex trading decision or wishes to invest funds with a professional foreign exchange trading manager. IBS Forex conducts in-depth reviews of established as well as new trading managers who specialize in foreign exchange.

Trading Systems Execution Services

Developed for our clients who wish to follow a particular trading system but do not have the time or inclination to monitor. IBS personnel will review your selected program and, if acceptable, will monitor the trading signals generated by the system and will execute orders accordingly. This is a premium service and is limited by the structure inherent in any one particular system.